Japan's government must take steps as needed to counter excessive declines in the yen, a senior government official said on Sunday, as the currency slides to its weakest level against the dollar in 24 years.
European Central Bank policymakers see a rising risk that they will have to raise their key interest rate to 2% or more to curb record-high inflation in the euro zone despite a likely recession, sources told Reuters.
The Bank of Japan is expected to end as scheduled a pandemic-relief funding scheme this month and discuss adjustments to a policy guidance that flags the COVID-19 pandemic as the top economic risk, three sources familiar with its thinking say.
The euro jumped to a more than three-week peak versus the dollar on Monday, and sterling rose to the highest this month as European Central Bank officials pushed the case for further aggressive monetary tightening.
Asian share markets rallied on Monday on hopes a key reading on U.S. inflation will show some cooling, while the U.S. dollar was restrained by the risk of higher European interest rates and Japanese intervention.
Britain's economy grew by less than expected in July when it expanded by 0.2% from June with a fall in power production possibly reflecting higher energy tariffs, official data showed on Monday.